almost there
Thinks s/he gets paid by the post
- Joined
- Sep 24, 2008
- Messages
- 1,023
I'm also 57 with an 18 year time frame and do Roth conversions in the 12% bracket. I am definitely trying to put more bonds/t-bills/cds into my IRA so it doesn't grow as fast as my Roth. My view is that with a larger Roth base to work from by the time I'm using SS at 70, I can use my Roth to essentially stay in 10/12/15% bracket.
Our current allocation is around 70/30, and used to be 85/15 before I retired. So my 30% bond/T-bills is being allocated more in my tIRA.
Other advantages of a larger Roth are:
* having to make unexpected expenses (like buying a new car, or medical emergencies) and not paying any taxes on it
* keeping ACA premiums minimized by withdrawing from Roth instead of tIRA or taxable accounts
* the ability to control your tax bracket from 59.5 to 75 when SS kicks in
Exactly. the key is controlling your tax bracket. Some just cant seem to see it. Boasting about a high tax bracket they cant get out of... Like it has anything at all to do with net worth. But to me its key. One of the advantages of putting off 401k taxes when working. Other wise, just do a Roth IRA and not worry about it.